Foreign currency in a nutshell
- a floating system - used by countries like the USA, Australia and England, where market factors (supply & demand, foreign investment, imports etc) determine the exchange rate
- a pegged system - used by countries like Cuba, Hong Kong and the UAE, where the currency is pegged (or fixed) to another country's currency, usually the US dollar
Do you watch the news in the mornings and see the Aussie dollar going up or down against the USD, the EUR and the GBP? Do you wonder why the rates shown at Travel Money Oz stores, or on our website (or those shown by any other foreign exchange provider) are different to what you saw on TV that morning?
The difference lies in the rates being wholesale or retail rates.
On the TV you see wholesale rate - the rates available to large financial institutions and companies buying and selling millions of dollars of foreign exchange. The rate you see from us is the retail rate - that is the rate that local banks and foreign exchange companies charge to individuals wanting to buy or sell foreign currency.
When do I change my currency?
Should you change your currency two months before your holiday or the day before you leave? It's really up to you!
Buy vs Sell? Rates & Commission?
What do you mean by buying and selling currency?
What about fees and commission?
It's all about the rates
Why do rates change all the time?
How do I know if the rate will go up or down?
So when is a good time to convert?